What Is Factory Overhead?

Indirect costs are a symmetry of "direct costs." It refers to the various expenses incurred by the production units (branches, workshops) of the manufacturing enterprise to organize and manage production, including the salaries and welfare fees of the management personnel of the production unit, office expenses, utilities, consumption of machinery and materials, labor protection fees, Depreciation, repair and amortization of low-value consumables. The accounting unit usually collects these expenses through the manufacturing expenses account. At the end of each accounting period, the collected manufacturing expenses are allocated according to certain standards (such as the man-hours spent in producing various products). Into the production costs of related products.

Indirect costs are generally allocated as a percentage of direct costs or as a weighted allocation of indirect costs for each contract based on a fixed amount of indirect costs ^[2]

Loss of money refers to the

Manufacturing costs are incurred by the production unit of an enterprise to produce products or provide labor services, and they should be included in the product or labor costs, but there are no ^[4] production costs for each item.